However, some of you managed to deceive the death angel and escape the murderer for the time being with the re-packaged offerings and pricing. Well, you tried to fool the market with packages named as basic, pro, enterprise or smart smarter, smartest.
All these packages did was segmented you prospects and offered them a bundle of services. You presumed a certain segment needed at-least the basics and a few others (who can afford) will be given the special extras.
The good this pricing policy did was it made your clients pay a certain minimum value. Remember the menu based pricing, where the client had the option of opting for the least priced dish???? This approach eliminated them. But this approach was also cost based and it also suffered from "one shoes doesn't fit all" phenomena.In a way it did more harm than helped the agencies. Here again the agencies said this my cost, my price so you Mr. Client please adopt.
The only way the agencies could have survived was by burying the billable hours. "Billable hours plus margins" is equal to price of the product. This approach killed numerous marketing agencies, the actual culprit.
Billable hour, time sheets, time tracking.... these are cost-accounting tools and not pricing methods. If you know what I mean.
So, how a lucky few survived and how they escaped the bullet of the murderer??? Were they plain lucky or they had a clever plan to escape death. Let me know if this story interest you and I shall be back unfolding another mystery.... btw I feel like James Bond now.... :P or Charlie's angle